Sun Pharma raises stake in Ranbaxy Malaysia

On October 13th Sun Pharmaceutical Industries Ltd said that one of its subsidiaries had increased its stake in the Malaysian unit of Ranbaxy Laboratories Ltd--Ranbaxy Malaysia Sdn Bhd. Sun Pharmaceutical's unit has raised its stake in the Malaysian company to 79.5% from 71.2% by acquiring 666,985 shares.

Ranbaxy Malaysia claims to be among the top ten pharmaceutical companies in Malaysia. It has a manufacturing unit in Sungai Petani in district Kedah, where it produces oral dosage forms such as tablets, capsules and dry syrups.

The two parent companies merged in 2015, after Sun Pharmaceuticals acquired Ranbaxy Laboratories to create the world's fifth largest generic drugmaker by revenue. At the time, Ranbaxy had run into trouble with the US Food and Drug Administration (FDA) over compliance issues at three Indian facilities. Earlier this year FDA lifted its import ban on one of these plants, at Mohali, but continues to bar US imports from the other two.

Retail pharmaceutical sales in Malaysia stood at an estimated US$1.8bn in 2016, and are expected to reach US$2.6bn by 2021. More than 100 Indian pharmaceutical companies operate in Malaysia, primarily in the form of joint ventures with local firms. As well as Ranbaxy, other Indian companies with a manufacturing presence in Malaysia include Cipla, Dr Reddy's Labs and SM Pharmaceuticals.